During the projected period, the global NaaS market is expected to increase at a Compound Annual Growth Rate (CAGR) of 29.4 percent, from USD 10.4 billion in 2021 to USD 37.5 billion in 2026.
5G is predicted to be the most powerful enabler in the spread of the IoT due to its speed, vast capacity, and ultra-low latency. The 5G network is capable of supporting a large number of static and mobile IoT devices with varying speeds, bandwidth, and quality of service needs. The 5G network’s exceptional speed, big bandwidth, low latency, massive scalability, and high reliability suit applications with high data density and rapid response needs, such as consumer VR/AR, AI, and autonomous vehicles, allowing for speedier adoption of these technologies. The United States, China, South Korea, Japan, the United Kingdom, and Germany are among the countries anticipated to implement network services first. Early adopters are expected to be countries with a strong 4G infrastructure. Countries with flexible IoT connection platforms are projected to transition to 5G services fast, most likely by 2020.
Large and small businesses are adopting cloud services at a faster rate.
Cloud-based services are increasingly being used by SMEs and large corporations, since they are more cost-effective than keeping an on-premises data centre and a costly IT resource to manage the organization’s whole network. Furthermore, businesses want a network that allows them to have on-demand access to their infrastructures, apps, and other IT resources. As a result, the adoption of the virtual resource-sharing environment has accelerated. Physical networking elements are converted into sharable virtual resources via NaaS components, which are employed by corporations for data centre connectivity requirements. The majority of businesses are attempting to centralise their operations and consolidate data from different sites in multi-tenant premises. As a result, businesses are migrating to cloud-based platforms to conduct their operations. Furthermore, with the introduction of Software-defined Wide Area Network (SD-WAN) and NFV-based solutions, third-party suppliers may now offer clients faster, simpler, and more flexible/programmable networks. These services can be purchased as a subscription or as a per-user licence.
Key Players and Manufacturers in the Global Network as a Service Market
Verizon Wireless, Inc., IBM Corporation, Oracle Corporation, Cisco Systems, Inc., and Hewlett Packard Enterprise are some of the most well-known participants in the global network as a service business. The global network as a service market is thought to be fiercely competitive, with multiple significant and established competitors populating the industry’s commercial environment. The competitive landscape of the worldwide network as a service market is fragmented, with a variety of small and large firms operating within the industry.
Leading players in the global network as a service market are pursuing a variety of growth strategies, including strategic collaborations and the introduction of new services. In February 2021, Cisco and Verizon Business, for example, strengthened their long-standing cooperation to provide novel policy administration and management models to support their clients’ desired corporate goals.
Lack of standardisation in the NaaS market is a constraint.
The difficulty in guaranteeing correct regulatory compliance while providing NaaS services to clients is a big concern in this business. Market suppliers must follow appropriate security and regulatory rules, which are critical for businesses to achieve their objectives. To stimulate the expansion of NaaS solutions, cloud providers must meet stringent scalability demands for storage, compute, and network resource sharing, as well as specialised requirements such as greater security, company reorganisations, mergers, and consolidations. Vendors may find it challenging to maintain and safeguard their technology, as well as comply with specific regulations and legislation, at some point. Vendor noncompliance with regulations and standards can have a direct impact on the services they provide to clients, putting the clients’ financial and business processes at risk. Customers can expect complete openness from NaaS service providers. They prioritise and provide programmes and services by following established standards and best service-delivery practises. Vendors find it challenging to keep up with continually changing technology and government requirements as technology evolves. In this industry, both sellers and clients face significant challenges.
Demand for SDN and NFV-based cloud-native solutions to replace traditional networking models is expected to grow.
In recent years, evolving network infrastructures have gained traction. The introduction of technologies such as SDN and NFV, as well as virtualization and cloud computing, has changed network infrastructures. Until the last decade, handling data from multiple locations was a huge difficulty due to existing technology and old network infrastructure. Furthermore, the old strategy necessitates a significant amount of time and money to develop bespoke silicon and purpose-built hardware that has restricted functionality and does not meet the expectations of clients. As a result of the introduction of SDN and NFV, the network infrastructure and management system have been transformed; these technologies have simplified network management by replacing hardware with software solutions. Even though numerous such companies have begun cooperating with various SDN and NFV solutions and service providers to enhance current NaaS systems and make them compatible with virtualization techniques, this would be a severe blow to incumbent technology vendors. SDN-based solutions separate the data plane from the control plane, allowing networks to be programmable and directed by software. Despite the compelling technological rationale for adopting SDN solutions, pushback from the networking enterprise fraternity may hinder adoption. From an industrial standpoint, this is important to thriving in this virtual environment.